Restaurant buildouts are among the most complex commercial construction projects — and among the most expensive per square foot. Here's what you need to know if you're opening or renovating a restaurant in Texas.
Average Restaurant Buildout Cost in Texas
Second-generation space (existing restaurant equipment/infrastructure): $75–$150 per sq ft. Cold dark shell (new construction, no prior restaurant use): $150–$350+ per sq ft. Full custom build with hood systems, walk-in coolers, and custom millwork: $300–$500+ per sq ft.
For a 2,500 sq ft restaurant, you're looking at $185,000–$875,000 depending on scope and finish level.
The Big Cost Drivers
Kitchen rough-in and hood systems are typically the single largest cost category — $40,000–$120,000 for a commercial kitchen. Fire suppression systems, grease traps, health department-required ventilation, and ADA restrooms add $30,000–$80,000 to most projects.
In Texas, licensed contractors are required for electrical, plumbing (TSBPE), and HVAC (TDLR) work on commercial spaces.
Permitting and Timeline
In DFW municipalities, restaurant permits typically take 4–12 weeks for plan review. Factor this into your lease start date — you'll be paying rent while waiting for permits. Build permit timelines into your contractor selection criteria.
Restaurant Buildout Cost Examples
Applying those per-square-foot ranges to two common restaurant sizes gives these typical planning estimates. They cover construction, MEP and kitchen infrastructure, permits and design, and the contractor’s fee — not kitchen equipment purchases, furniture, signage or lease costs.
| Space | 2,500 sq ft | 4,000 sq ft |
|---|---|---|
| Second-generation ($75–$150/sq ft) | $187,500–$375,000 | $300,000–$600,000 |
| Cold shell ($150–$350/sq ft) | $375,000–$875,000 | $600,000–$1,400,000 |
| Full custom ($300–$500/sq ft) | $750,000–$1,250,000 | $1,200,000–$2,000,000 |
Opening in Dallas? Our Dallas restaurant buildout cost guide runs the same ranges through our estimator for the Dallas metro, with local permits and worked examples.
Where the Money Goes
As an illustrative planning split for a cold-shell restaurant: roughly 40% goes to MEP and kitchen systems (hood, make-up air, grease interceptor, gas, plumbing, electrical and HVAC), about 35% to construction and finishes, around 8% to permits and design, and about 17% to the contractor’s fee and contingency. These are rough allocations, not data from bids — but they show why the kitchen and its infrastructure decide most of the budget.
Second-Generation Space: What to Check Before You Sign
- Hood and suppression: Is the hood the right type and length for your cooking line, and is the suppression system current and serviceable?
- Grease interceptor: Is there one, is it sized for your menu and seat count under the city’s rules, and when was it last pumped and inspected?
- Utilities: Is there enough gas, electrical capacity and water heating for your equipment?
- HVAC and make-up air: Do the rooftop units and make-up air unit work, and can they handle your kitchen?
- Restrooms and accessibility: Do restrooms and the entrance meet current accessibility standards, or will they need to be rebuilt?
Have a contractor walk the space with you before signing. “Reusable” equipment that turns out to be undersized or failed can erase most of the savings.
Approvals for a Texas Restaurant
Under the Texas Food Establishment Rules, plans for a new food establishment, an extensive remodel or a conversion must be reviewed by the local health authority before work begins, and the health department inspects before you open. You will also need a city building permit, grease interceptor approval under the city’s rules, and a Certificate of Occupancy for your business. Kitchen hood suppression systems are installed by companies licensed by the State Fire Marshal’s Office, and the local fire marshal typically signs off on them. Projects with a total estimated cost of $50,000 or more must be registered with TDLR for accessibility review.
How Long a Restaurant Buildout Takes
On top of the 4–12 weeks of plan review, typical construction runs about 6–10 weeks for a second-generation space, 12–20 weeks for a cold shell and 16–28 weeks for a full custom build. Hoods, walk-in coolers, rooftop units and electrical gear are common long-lead items. Because rent often starts on a fixed date, finishing drawings early and ordering equipment as soon as possible protects your opening.
Questions to Ask Restaurant Bidders
- How many restaurants have you built in the last two years, and in which cities?
- Who provides and installs the hood, the suppression system and the grease interceptor?
- Who buys and sets the kitchen equipment, and who makes the final connections?
- Which items have long lead times, and when do they need to be ordered to hit the opening date?
Restaurant Buildout Cost FAQ
Is it cheaper to take over a former restaurant? Usually. A second-generation space can cut the per-square-foot cost roughly in half compared with a cold shell, as long as the hood, grease interceptor and utilities really are reusable.
Does a landlord contribute to a restaurant buildout? Often, through a tenant improvement allowance. For second-generation restaurant space in DFW, $30–$60 per sq ft is a common range. See our tenant improvement allowance guide.
Do these costs include kitchen equipment? No. Equipment purchases, smallwares, furniture and signage are separate budget lines.
Finding the Right Contractor
Restaurant buildouts require contractors who understand health code requirements, commercial kitchen specifications, and local permitting processes. BidBridge Texas connects restaurant operators with verified commercial GCs who have restaurant buildout experience across the DFW area.